The VIC Strata Magazine | May 2022

The VIC

STRATA MAGAZINE MAY 2022

Convincing lot owners of the importance of a healthy sinking fund

Making the Right Decision - a patch job or a new roof?

Page 12 | Strata Guardian

Page 18 | RC & Co Lawyers

Is it our parking space... or common property?

Page 28 | Stratabase Holdings

About Us LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.

As well as publishing legislative articles to keep thier audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.

Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at The LookUpStrata Directory, flip to end of this magazine.

Meet the team

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013.

With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.

Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Proffessional Development Committee.

More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Nikki Jovicic Owner / Director

Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.

Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.

Liza Jovicic Sales and Content Manager

Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au

2 www.lookupstrata.com.au 2 www.lookupstrata.com.au

Contents 4

MIMOR puts residents in charge MIMOR

6 Water leak - Who is liable for the excess?

Tyrone Shandiman, Strata Insurance Solutions

8 Health impacts of mould from a faulty roof Ryan Richards, Sedgwick

10 Automating Support Functions in Strata Management

20 Helping large owners corporations to change management companies and improve the running of their buildings Strata Management Consultants

22

Stratabase Holdings

24

Tim Fuller, Strata Guardian

14 Building a sustainable supply chain The Knight

16 Can the OC determine when levies are due (a month early)?

Anton Silove, MBCM Strata Specialists

18 Making the Right Decision - a patch job or a new roof?

Rochelle Castro, RC & Co Lawyers

Keeping the fire doors closed Chris Chatham, Linkfire

26

Urbanise

12 Convincing lot owners of the importance of a healthy sinking fund

he heated pool is affecting our T night’s sleep

enefits of a standardised scope B of works when dealing with defect remediation Bruce McKenzie & George Endacott, Sedgwick

28 Is it our parking space... or common property?

Stratabase Holdings

30 The building valuation and the maintenance plans schedule Dakota Panetta, Solutions in Engineering

32 Strata sector reform and accountability in Victoria - not just your (minimum) standard fare SCA (VIC)

34

The VIC LookUpStrata Directory

Thanks to our sponsors

Mimor puts Residents in Charge Building Information What day do the bins go out? Which electricity supply is the building with? When is hard rubbish collection?

Moving into a new apartment block raises many questions, with the leasing agent or building manager often fielding most of the enquiries. But what happens when you need the answers quickly or after hours?

Australian entrepreneur Jake Sharp has solved the communication challenge, creating the Move In Move Out Register – MIMOR as a one-stop shop to overcome strata-living sticking points. The digital platform acts as a central information and communication

hub for residents and building managers and service providers, comprising vital building information, moving processes, procedures for booking facilities and common areas, general announcements and real-time communications via email and SMS alerts.

EVERYTHING YOU NEED TO KNOW ABOUT A BUILDING IN ONE PLACE, ACCESSIBLE 24/7.

Instead of having to search for leaflets or chase managers and agents, through MIMOR residents have easy access to vital building information 24 hours a day. At the click of a button, they can find the latest information regarding gas connections, electricity suppliers, water rates, internet availability, pets, connecting to Foxtel, how to obtain extra keys, Owners Corporation Rules, and emergency contacts and evacuation plans.

“It just makes sense to collate and centralise information necessary to individual needs as well as communal living, particularly details and contacts for essential services such as power and water utilities,” Sharp said.

“The scope of information is tailored to a building’s size and facilities, and can be added to or updated at any time, without the manager having to resort to reprinting leaflets or sending letters to hundreds of residents, so it’s far more convenient for them as well.’’

“I have even had feedback from long-term residents saying they had discovered a lot of useful information about their building after the owner’s corporation switched to MIMOR.” Information regarding lift dimensions and basement car park heights can also be included for residents moving in or out, which can also be booked through the MIMOR platform. Functionality also

info@mimor.com.au

extends managing parcel deliveries and collections, as well as booking common areas and building facilities.

MIMOR’s email and SMS communication function can also notify residents of urgent building information such as planned power outages, maintenance or emergency repairs.

MIMOR subscriptions are scalable, from three apartments to more than 500, and the platform is being translated into 10 languages, with a mobile app version to launch soon.

For more information, go to

mimor.com.au

mimor.com.au

5

Water leak

Who is liable for the excess?

A hot water meter from an embedded gas hot water system failed, leaked water onto the corridor carpet and damaged the floating wood floor inside an apartment. Who is liable for the excess?

Our 4 level apartment building has an embedded gas hot water system. One of the hot water meters in the ceiling in the corridor outside an apartment failed, leaked water onto the corridor carpet and damaged the floating wood floor inside an apartment.

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The meter was specific to the damaged apartment. Is the apartment owner liable for the large insurance excess on the OC claim? As the meter is the property of the utility company was the liability theirs in this situation?

In cases where an owner’s lot causes damage to another lot, they may be liable for the access because of the benefit principle that applies.

With regard to excess in Victoria the legislation is silent.

I wish every state adopted Queensland’s legislation because it actually talks about excess, whereas every other state in Australia does not talk about excess. So we then have to go to what a judge is saying in these cases.

So in this instance, how Victoria works is they work on the benefit principle. I’m going to read to you a judgement

by Paisley vs The Owners Corporation for PS 55240.

This does give good guidance on access and in particular the benefit principle.

In my view, the payment of an excess, as opposed to the payment of insurance premium, attracts the benefit principle. It is money paid out to effect to repair and as such consideration should be given to the person or persons who benefit. In this instance, the owner of the lot benefits because it covers repair to their property.

Now, if the owner of lot 4 is responsible for the leak, the judge then goes on to say the question then arises, who benefits from the

payment made from insurance? In most scenarios, the excess is paid by the person whose properties or actions resulted in the damage. That is because the person receiving the benefit by not having to pay out the full cost of damage. So in the case where someone is responsible for the water damage, what the judge has said is that it is Mr. PAISLEY, who was the respondent,

READ MORE ON THIS TOPIC HERE

is receiving the benefit not because Mr. Paisley’s unit was damaged and requires repair but because the source or cause of damage arose from within Mr. Paisley’s lot.

In effect, he is receiving the benefit of not having to pay the cost of the full damage.

So in cases where an owner’s lot causes damage to another lot, they may be liable for the access because of the benefit principle that applies.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au

7

Health impacts of mould from a faulty roof Q

Due to a faulty roof, mould is growing on the plaster ceiling.

What are the health impacts and should the ceiling be replaced?

I have a couple of lots that regularly flood via faulty roofs.

There is a lot of pigeon mess and dirt that has flowed in through the floor above into the lot boundary and settled around the lighting ballasts and plaster.

Mould is growing on the plaster ceiling, behind the plaster wall and on the brickwork. These areas haven’t been flooded in a year or so. I’m wondering about the health impacts. Does the ceiling need to be ripped out and replaced?

A

Mould requires moisture, oxygen and a food source in order to grow. Generally, if you remove one out of the three, the mould will stop growing.

Obviously for a mould to be visually grown on the plaster ceiling, the water ingress issue will need to be addressed. Mould requires moisture, oxygen and a food source in order to grow.

Generally, if you remove one out of the three, the mould will stop growing.

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With regards to the mould growing behind the plaster I’m assuming they’re referring to the mould growing on the back of the plaster or the gyprock.

If that is the case, the best form of mould remediation is the removal of the mould damaged plaster if it has been structurally compromised.

Sometimes surface mould on plaster can be just wiped down and decontaminated. It all depends on whether the mould is growing through the plaster or it’s just on the surface. If mould is growing on the brickwork, that can simply be decontaminated.

Bricks are not a natural food source and if there’s any visual mould on the bricks, it’s likely growing on the dirt on the bricks, not the bricks themselves.

Similar to mould on glass.

As we know, mould is everywhere in our environment, and everyone reacts differently to it.

In regards to the health conditions when exposed to different levels of mould, that’s different for every person. Unfortunately, the only person that can determine what health impacts there are is a doctor and it’s obviously dependent on the individual exposed to mould.

Sedgwick is more than happy to look at this situation further if there are some photos of the area to give a bit more advice. I’m going off of what the information has been provided.

Oh – and get rid of the pigeons!

READ MORE ON THIS TOPIC HERE

Ryan Richards | Sedgwick

Ryan.Richards@au.sedgwick.com

Supporting Owners and Strata Managers with tailored remediation and repair solutions

B U I L D I N G C O N S U LTA N C Y

R E PA I R S O LU T I O N S

•

Defect reports & forensic engineering

•

Emergency make safe

•

Scope of works

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Fire water damage restoration

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Dilapidation & risk surveys

•

Leak detection

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Dispute mediation and expert witness

•

Contamination response

•

Contractor procurement and cost validation

•

Building repairs

•

Construction management

•

Cost validation services

•

Capital Works Funds/Maintenance Plans

•

Digital Capability

•

Digital Capability

1300 735 720 sales@au.sedgwick.com

1300 654 599 sales@au.sedgwick.com

AUTOMATING SUPPORT FUNCTIONS IN STRATA URBANISE STRATA: MANAGEMENT THE MOST COMPREHENSIVE STRAT

MANAGEMENT SOFTWARE IN THE C

www.urbanise.com/strata

CONTACT US FOR INFORMATION Urbanise is a Corporate Member of SCA NSW

TA CLOUD

R MORE

Shaun Meyrick Business Development Manager Urbanise Strata email: shaun.meyrick@urbanise.com mobile: (+61) 412 360 666

Time is a precious commodity, especially for strata managers.

Invoice Processing

With recent innovations in technology and automation, the average strata manager and support team members have become much more efficient now compared to 20 years ago.

At its core, the Urbanise Strata solution is a sophisticated strata accounting and operations platform which allows strata managers to automate their work and optimise efficiency. It is provided as Software as a Service (SaaS) offering to clients.

With innovative leading-edge strata management software platforms, your data sits in the cloud, allowing real-time access to remote team members and clients.

Customised configurations also give you full control over your team member’s access level, making remote working easy to set up and efficient, whilst protecting sensitive business data.

Invoice processing A number of providers offer support services for invoice processing (either at piecemeal or per hour rates) for what is effectively basic data entry. This work has become particularly cost effective with bulk Account Payable processing software using learning algorithms capable of data entry.

With Urbanise Strata, clients can turn on the QuickAP integration which automatically digitises the data from invoices received and begins processing them.

Please click here to download the QuickAP brochure.

Collections With a solid policy and process in place, an outsourced provider can handle this for you by accessing the data directly from Urbanise Strata and updating the records without any need to send or receive/reconcile data with the strata manager. Inbuilt auto-escalation tools allow the platform to handle escalation communication automatically, allowing your team to better utilise their time on other collection activities.

Personal assistance and general administration There are many tasks that can best be described as general. Everything from digitising copies of files to updating supplier records and responding to simple email enquiries.

Software has automated many processes and requires only the occasional check by a person while everything else is done automatically. Processes including Business Activity Statements, client invoicing, levy generation, meeting agenda and minutes creation, task generation, report creation and issuance, and many other processes/tasks can be set up to be done automatically.

StrataVote meeting module By fully integrating with the industry leader in meeting management, StrataVote Agendas, minutes and other important meeting documents can be generated automatically with minimal risk of human error. Owners can vote electronically and tally tools to ensure that there is no wait while poll votes are counted.

Please click here to download the StrataVote meeting module brochure.

Collections

Mail room Integrated solutions such as ePost can remove the need for any user involvement other than setting the system up. Invoices, reports and the like can be checked in the event of an email bounce. If there is no email, an automatic instruction is sent to the mail room to send a physical piece of mail. After set-up, this can be done 100% automatic with no human involvement in the process.

Please click here to download the ePost brochure.

If you would like to learn how automation can help you with strata management, please feel free to contact Shaun Meyrick at shaun.meyrick@urbanise.com. As a former head of strata management in the Middle East and with experience in Australia, Shaun is always happy to share experiences in this space.

Connect with Shaun on LinkedIn here.

Accounting You may not need a full-time accountant in most strata businesses. There are accountants and former strata specialists that can access your system remotely and assist with this. There are also tools such as an auto-journaling tool that automatically divides a multi-period invoice across the respective months. Simply select a start and end date when uploading an invoice and this tool automatically works in the background.

1300 832 852 marketing@urbanise.com www.urbanise.com.au

Shaun and the team will also present Urbanise at the upcoming events, please come by and say hello.

SCA National Convention (Australia & NZ), 31/05/2022 to 01/06/2022, Melbourne Convention Centre.

Convincing lot owners of the importance of a healthy sinking fund

How do you persuade a reluctant strata committee and lot owners that we need to increase levies to build a healthy sinking fund?

How do you persuade a reluctant strata committee that we need to increase quarterly levies or raise a special levy to build up a very low sinking fund? What tips can you give to help the community to convince lot owners to get an unhealthy fund back to a healthy balance?

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Lower levies may be more money in your pocket right now, but is that always the case at the other end?

Show them our recent video: A Healthy Sinking Fund Means Healthy Property Values. Hopefully, this will get lot owners and committees talking about what happens when things go wrong and talking about what happens if we haven’t got enough in the sinking fund and something happens.

There is always scheduled, or unscheduled, maintenance that needs to happen. If there are no funds available for these works, is everybody happy with a large one-off or what could be ongoing special levies, increases or loans to meet that necessary expenditure? The money has got to come from somewhere.

If the work has to do with safety, it could be a huge priority that needs to be done with little or short notice. It may not be able to be put it off. Lower levies may be more money in your pocket right now, but is that always the case at the other end?

READ MORE ON THIS TOPIC HERE

Tim Fuller | Strata Guardian contact@strataguardian.com

Building a sustainable supply chain.

How to reduce the environmental impact of your Owners Corporation.

Sustainable businesses have realised that it is not enough to ensure their practices are sustainable, they also must look to their supply chain and ensure they employ businesses that share their values.

Owners Corporations are major employers.

Caretakers, plumbers, painters and much more all get engaged by owners corporations on a regular basis.

However, few owners corporations consider the impact the services they employ have on the planet.

It is common for strata managers to obtain several quotes when work needs doing at a property. Most often we find the choice of who to engage comes down to price primarily, but what if there was other criteria committees could consider?

Sustainably minded committees can choose to engage contractors who share their values. For example, Miss V, a cleaning company that services owners corporations, uses only non toxic cleaning supplies and arrive on bicycle wherever possible.

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Another example is Wheelie Bin Cleaning Man who follow EPA law on recycled water. They use clean hot water to clean bins and retain the waste water and dispose of it via EPA guidelines and use environmentally friendly products.

Committees can even choose to engage a carbon neutral owners corporation management company.

The Knight is Climate Active certified as carbon neutral and has made its internal practices more sustainable and assisted clients in their journey.

Sustainability also goes beyond just environmental standards. Cleaning & security are two of the most at-risk industries for modern slavery. Cleaners and security guards are also commonly employed by owners corporations.

As a part of any contract or tender, committees can request the contractors quoting confirm they comply with the Modern Slavery Act 2018. Most owners do not want to employee a company that behaves unethically or mistreats its employees. Making it a

Building a sustainable supply chain.

part part of of thethe tender, tender, ensures ensures you you dodo your your due due diligence diligence and and reduces reduces thethe likelihood likelihood of of unethical unethical behaviour. behaviour.

Looking Looking at at your your supply supply chain chain goes goes beyond beyond just just employing employing thethe right right people. people.

ForFor example, example, one one Owners Owners Corporation Corporation when when replacing replacing their their carpet carpet have have asked asked thethe companies companies quoting quoting to to ensure ensure they they palletize palletize thethe oldold carpet carpet soso it can it can bebe recycled recycled and and repurposed. repurposed.

Many Many contractors contractors areare willing willing to to accommodate accommodate these these requests. requests.

WeWe know know of of a maintenance a maintenance company company who who hashas worked worked to to useuse recycled recycled and and environmentally environmentally friendly friendly materials materials onon request. request.

Looking for an Owners Corporation Manager who prioritises sustainability?

The Knight is a carbon neutral, family-run business of 27 years, managing over 400 Owners Corporations of all types & sizes across greater Melbourne and Geelong.

Our ethos is summarised in three words: insight, integrity, and results. We are set apart by our tried and tested expertise, high ethical standards, and long-lasting client relationships.

When When you you look look at at reducing reducing your your footprint, footprint, gogo beyond beyond just just looking looking at at your your own own practices. practices.

If you If you areare onon a committee, a committee, consider consider how how thethe choices choices your your owners owners corporation corporation makes makes may may impact impact thethe planet. planet.

9509 3144

newbusiness@theknight.com.au

Carbon neutral Owners Corporation Management.

Request a free Management Proposal today.

15

Can the OC determine when levies are due (a month early)?

Q

Our Strata manager has requested we pay our next due levies a month early. Can they do this?

My Strata Manager just issued our quarterly levy bill but expects levies to be paid one month early. We’ve just paid the last levy payment on 1 April. The next levy payment would normally be due 1 July but our strata manager wants it paid by 1 June so they could make sure it was paid before the end of the financial year. Is this legal?

A

The Owners Corporations Act 2006 says that the owners corporation may determine when annual fees are to be paid.

The annual fees are set by the owners corporation who may also determine when annual fees are to be paid. The Owners Corporations Act 2006 says that the owners corporation may determine when annual fees are to be paid. If such a decision has not been made then it might be that the manager has been delegated the power to make such a decision.

It is likely that the annual fees will have been set at the annual general meeting and at the same meeting the timing of the payment of

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those fees has been determined. If that is the case then the fees ought to be struck according to those resolutions. It is generally accepted practice to split the annual fees into four payments with each one being payable on the first day of each quarter but that is not a legal requirement.

If the owners corporation has not set a date or a change is needed then who decides on timing of striking annual fees will depend on whether there is a committee in place and on the delegations given by the owners corporation or the by the committee. That having been said it would be very unusual for there to be an additional payment needed towards the annual fees required at the end of the year but there might be a good reason for this and I would suggest inquiring with the manager as to why this came about.

So, given the above, it might be legal to make the fees payable on the first of June depending on what resolutions have been made and on what authority they have been struck on that date. Perhaps a more helpful question to ask, rather than “is it legal”, may be “is it reasonable, under the circumstances”, to have struck the fees on that date.

READ MORE ON THIS TOPIC HERE

Anton Silove | MBCM Strata Specialists rkaka@mbcm.com.au

Wait now, pay more later.

This article is brought to you by Lannock Strata Finance.

There has been a lot of discussion about record increases in the price of real estate over the last 12 months but there is a more pressing issue that strata owners need to be aware of – the rising cost of construction works.

A combination of booming demand, labour shortage, material shortages and supply chain disruptions are creating the perfect storm for increased construction costs.

According to CoreLogic’s Research Director Tim Lawless, the heightened construction activity and rising costs experienced across Australia won’t be going away soon and will likely cause affordability challenges for owners across the country.

“The quarterly rate of growth in construction costs is happening everywhere and is not restricted to one city or state, it’s a national trend,” he said.

“This construction cost inflation could continue for another 12 to 18 months.

It’s unlikely the industry can absorb a cost increase this significant into their margins and higher construction costs will ultimately be passed on to the consumer, placing further upwards pressure on the price of a new dwelling or renovation.”

Already we’ve seen just how much pressure is being placed on the construction industry, with Probuild and Condev both going into liquidation in recent weeks.

In short, costs are going up and the construction industry is buckling under the pressure.

The more you delay, the more you will pay.

Owners corporations who choose to delay any rectification, maintenance or uplift work on their property may be setting themselves up for a shock later on.

Do you have a strata project that is needing finance?

Regarding funding of any works, the corporation always has three options: to accumulate a Maintenance Fund over time, to have a Special Levy or to Borrow (or a combination of these three methods).

It takes time to accumulate moneys in a Maintenance Fund.

Special Levies should be a quick solution but will be delayed if there are owners who find the cash flow impost too large.

A strata loan is immediate, unsecured and does not involve a mortgage, personal financials or guarantees.

What’s the right decision?

As with any big decision, it’s important to be informed. If your clients are looking at rectifying defects or considering maintenance or renewal/uplift projects over the next few years, it will be important to discuss with them the implications should they choose to delay the works.

We can help you with the finance you need for your next strata project.

Having operated for 20 years, our friendly team have the knowledge and experience to deliver the funds you require.

17

Making the Right Decision

A patch job or a new roof?

Our previously patched roof is in desperate need of repair.

I’m sure the committee will choose the cheapest ‘patch job’ quote rather than the required new roof. How can I ensure the correct choice is made?

The roof of our strata building is in need of repair (it was previously ‘painted’ to delay repairs for up to 6 years – which has expired) and the OCC obtained 3 quotes. Two of these state how bad the roof is and that it is not up to code (for many reasons) – the quotes were within a couple of hundred dollars of one another at $70K. The other quote was for another ‘repair’/paint job at a cost of about $5K. To do the job properly the roof needs to be replaced and, as there is no sinking fund, a special levy will need to be called for.

The OCC is being controlled by 3 owners who do not live in the building and who will choose the cheap option. My unit is immediately below most of the damaged roof. Is there a way to ensure the replacement option is selected (over the quick fix)?

If the OCC chooses the cheap option and my unit is damaged as a result, can I sue both the OC and the individual members personally?

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Owners Corporations make decisions based on the majority vote.

The Owners Corporation is responsible to repair and maintain the common property.

If the roof is common property, the Owners Corporation (not individual members) are liable to make sure that the repair option it voted to take will last. If the roof rectification fails and you experience damage to your property, you should make a claim against the Owners Corporation.

Owners Corporations make decisions based on the majority vote. We suggest that you discuss your concerns with the other lot owners so that they could consider voting for the best roof rectification method that will last (and not just a quick fix).

READ MORE ON THIS TOPIC HERE

Rochelle Castro | RC & Co Lawyers law@rccolawyers.com

Helping Large Owners Corporations to Change Management Companies and Improve the Running of their Buildings It has been a very busy past few months and year for us

The OCM’s actions actually resulted in the OC having to

at Strata Consultants.

engage legal representation to contest and clarify that OC in fact did not have any obligations to follow through

We have had many conversations with industry contacts, our trusted management companies, and the Committees that we work with. We have noted several factors that seem to have contributed to more Committees wanting to change OC management companies:

with the procurement contract.

The Committee, being cautious and with our assistance, put in place predefined spending limit tiers for the new OCM – which we’d imagine would increase over time when trust is fostered with the new OCM.

1. Committees looking at the long list of annual expenses in their financial reports and concluding

Building in South Melbourne – 145 Occupiable Lots, 1

that large contracts (including the OC management

OC

company) should be reviewed and benchmarked

A very prevalent problem across Melbourne – a new

for the benefit of the OC and all Owners at regular

development and all the contracts were signed and

intervals.

set-up by the developer before owners even moved in. new

The Committee having attended 2 or 3 AGMs became

developments the service providers and contracts

concerned with the high and regular turnover of OCM

entered into by the developer don’t necessary equate

staff and started to ask questions.

2. Committees

seeing

firsthand

that

with

to what’s best for the OC in terms of quality, scope, or competitiveness.

The Committee engaged us to scope and run the tender

3. Committees realising that the OCM is important to

process for new owners corporation management

their building when it comes to advice/guidance on

companies. We had numerous Zoom meetings with

important issues i.e. cladding or other issues.

the Committee (as we were under various restrictions at the time) and also managed to undertake a building

Below is a snapshot and overview of some buildings that

tour. After many interviews of shortlisted management

we have helped to change OC management companies

companies, the Committee had decided on their new

and the results that we have delivered.

OCM. We were then able to negotiate a $6,525 reduction in the management fee with no annual increase for the

Building in Carlton - 425 Occupiable Lots, 2 OCs

OC.

The previous OCM unscrupulously ‘signed’ a contract, allegedly on behalf of the OC, to replace the building’s

Building in Southbank - 167 Occupiable Lots, 1 OC

intercom system with a small IT company with no

Developer appointed OC management company – not

experience in this area. This was undertaken on the

actioning things, not responding to the Committee,

OCM’s own accord, no scope or tender process was

and assigned managers kept leaving the company. The

undertaken and the contract was entered into without

Committee entrusted us to guide them on the process for

approval of the Committee or OC.

After scoping, tendering, and interviewing, the Committee

Wanting to benchmark the performance and cost of your

ultimately appointed a company that was $10,168 less

owners corporation management company?

expensive that the company that the developer had appointed.

Building in Melbourne’s CBD - 359 Occupiable Lots, 4 OCs The OC / building was managed by the same company for a decade and a half. The Committee had felt in recent years that things could have been improved – namely around financial reporting aspects of the OC. The Committee engaged us to assist with the tendering and potentially changing OC management companies in November 2021.

In April 2022, after months of discussions and interviews, the Committee commenced working with their new owners corporation management company.

Strata Consultants Melbourne One of the questions we’re often asked is ‘how long does it take to change owners corporation management companies?’ In many ways it’s up to the Committee as to how fast they want to move through the process.

However, for larger buildings, it’s generally better to plan and act months in advance.

We’re currently with 4 other large OCs with 300+ Occupiable Lots – some of these are multi OCs; meaning multiple Committees and a lot of meetings to discuss the best options for new owners corporation management.

Speak to us on 1300 917 848 or via email office@strataconsultants.com.au

The heated pool is affecting our night's sleep

Q

We’ve lived comfortably above the heated pool in our apartment complex for years. A recent temperature increase has resulted in uncomfortable sleeping conditions. Can we ask for the pool to be turned back down?

I live above the heated pool in an apartment complex. For 17 years, after some discussions when we first moved in and found the apartment too hot, we have had a constant temperature that although warm, is liveable.

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Recently, a couple of tenants wanted a warmer pool and the new concierge has turned the pool up several degrees. This has resulted in temperatures of 25 to 26 degrees in our bedroom at night. This is not comfortable. Am I in my right to ask them to turn it down? Should we escalate the matter to VCAT?

In this instance, it may be argued that the higher temperature is causing a hazard to your health.

any other person entitled to use the common property. In this instance, it may be argued that the peaceful enjoyment of your lot is affected by the higher temperature and behaviour of tenants.

One may refer to the Model Rules, “1.1 Health, safety and security of lot owners, occupiers of lots and others.

A lot owner or occupier must not use the lot, or permit it to be used, so as to cause a hazard to the health, safety and security of an owner, occupier, or user of another lot.”

In this instance it may be argued that the higher temperature is causing a hazard to your health.

It is always preferable to resolve these matters by discussion. You may therefore decide to write to the Committee expressing your concerns with the view to a resolution.

Alternatively, you may refer to Part 10 of the Act – Dispute resolution – Item 7 in the Model Rules. These clearly define the process for dispute resolution.

A

It is also worth noting 6.1 Behaviour of owners, occupiers and invitees on common property An owner or occupier of a lot must take all reasonable steps to ensure that guests of the owner or occupier do not behave in a manner likely to unreasonably interfere with the peaceful enjoyment of

In our opinion, VCAT should always be viewed as a last resort once all other avenues have been exhausted.

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Records the service cycle of your asset and assists with budgeting.

23

Keeping the Fire Doors Closed Which Act, Regulation or Code in Victoria specifies that a fire door must be kept closed except for normal ingress/egress?

A fire door cannot stop a fire if it’s open.

It’s logic. That’s how a fire door works. A fire door cannot stop a fire if it’s open.

Beyond that, you go to BCA à AS1905.1, which tells you how a fire door needs to operate.

Then your Occupancy Permit (OP) will list “fire doors” and the building regs required to maintain ESMs as per your OP. There is an exception if it has a suitable hold-open device that will release upon fire detection.

Chris Chatham | Linkfire

Chris.Chatham@linkfire.com.au

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Expert Owners Corporations Lawyers

Tisher Liner FC Law provides quality and cost effective legal services to Owners Corporations and their Managers across Victoria and the ACT Our highly experienced team provide quality assistance to owners corporations, committees, lot owners and managers of owners corporations in a wide variety of legal matters including:

Phillip Leaman

• General advice and governance; • Interpretation of plans of subdivision, common and private lot boundaries;

Phillip Leaman LLB (HONS), BCOM Principal Lawyer pleaman@tlfc.com.au

• Levy recovery; • Domestical building dispute claims and Water Act claims; • Adverse possession and compulsory acquisitions;

To see a list of matters we've been successful in or to access our OC information resources please visit our website or sign up to our blog.

• Easement and amendments to plans of subdivisions; • Creation and enforcement of owners corporation rules; • Preparing leases and licences over common property; • Advice on repairs and maintenance and application of the Benefit Principle; and • Prosecuting and defending claims made at VCAT by Owners Corporations and Lot owners.

Level 2, 333 Queen Street, %el ourne, Victoria, 3000 I +613 8600 9333 ocenquiry@tlfc.com.au I tlfc.com.au

25

Benefits of a standardised scope of works when dealing with defect remediation

Does Sedgwick provide strata managers with a templated scope of works or support or documents to ensure the insurers are put at ease?

We use a fairly standardised layout. Most of the insurers have all seen it before.

Bruce McKenzie, Sedgwick: As a business, how Sedgwick prepares our scope of work are relatively typical. Most of them are similar in layout and what we’re doing is providing explicit advice to a contractor on what we want them to do, right through for every stage of the work.

26 www.lookupstrata.com.au

If we talk about cladding and most defects, when we look at the problem of cladding or a particular defect, I can assure you, when you write a scope of work, it’s not a matter of just removing that thing and replacing it. There’s always subsequent work that happens and part of what we try to do is to unpack all of that work.

If it is in a unit where we may end up having to strip plasterboard off, this might mean carpet replacement, it might mean fixing the gardens outside, because the scaffolds going to damage it. It’s all of those knock on things that we try to make sure the builder includes. The benefit of that is to try and alleviate surprise costs and variations later on, where owners certainly don’t appreciate a builder or anybody else, for that matter,

turning around saying, it looks like we’ve got another $50,000 worth of cost because we didn’t realise that we had to cut up a section of driveway to do what we did.

Part of what we do is take a fairly deep dive into the whole methodology of ‘How is this going to actually occur?’ We look into things when we start to consider contractors such as, ‘How are they going to gain access to that side of the building?

Are they expecting to completely block the driveway and access so no one can park for three months?’, Or ‘What considerations have they made?’, Because we work with live buildings all the time, we know the questions to ask and we already know what’s acceptable and not acceptable to most owners corporation so we will dive into that deeply and make sure a builder is realistic in the way they’re going to approach it to mitigate or reduce the impact to the occupants, particularly when they’re going to be occupying the building. That’s part of the service we provide.

To answer the question more directly.

Yes, we use a fairly standardised layout.

Most of the insurers have all seen it before.

It often goes to insurance builders as well if it’s another kind of loss that we’re involved with. Floods is probably a really big one at the moment.

George Endacott: The scope of work is a very important document. It effectively provides that conduit of written communication between the principle contract or who’s going to undertake that work, and who’s providing

Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com

or where that instruction has come from.

That line of communication needs to be very clear. If there’s any dispute, you’ve got that source of truth to go back to. By the time you have a signed off scope of works, everyone is on the same wavelength. Everyone knows what the expectation is, and you can use that as your conduit for proceeding.

I can’t emphasise enough that the scope of work is an integral document in the whole process. Obviously, as project managers, we would use that then as a cornerstone for how we will then support on behalf of clients the programme delivery of that project.

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George Endacott | Sedgwick George.Endacott@au.sedgwick.com

27

Is it our parking space... or common property?

28 www.lookupstrata.com.au

In our small 3 lot scheme we each have a parking space outside our garage, believed to be for our use.

A new lot owner pointed out this is common property and cannot be used for parking. Is this correct?

There are 3 separate strata villas on our block.

We share a common driveway and each have a car space directly outside our private garage.

When we purchased the property, we were under the impression that these ‘private’ spaces in front of our parking garages were for our use. The additional parking space in front of my garage was one of the reasons I bought this unit.

Recently, a new owner purchased into the property. The new lot owner states that no one is allowed to park in the space outside of our garages as it is common property.

Are we able to use these space as we see fit?

You should confirm your title/ ownership boundary by referring to the plan of subdivision.

Boundaries of title and ownership are defined on the plan of subdivision.

It is recommended you confirm your title/ ownership boundary by referring to the plan of subdivision.

If the area in front of the garage is marked as common property and not marked as a designated car parking spot then unfortunately one cannot park there.

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Stratabase Holdings info@stratabasemgt.com

29

Is there a suggestion to align building valuation with maintenance plans schedule?

The building valuation and the maintenance plans schedule

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There is no crossover between these two reports in terms of content.

Both insurance valuations of the building and a maintenance plan should be updated every 5 years, this is industry best practice and often the insurers will request this of a scheme.

There is however no crossover between these two reports in terms of content.

A building valuation, also known as an insurance replacement valuation, is a report outlining the cost to rebuild your strata scheme if the worst was to happen and it was completely destroyed.

This valuation guides the committee and the insurer to work out a suitable insurance policy based on this cost of rebuilding/ replacing. This is very different to a market valuation (which a lot of people get confused by), whereby the value of the property on the real estate market is determined i.e. what could it currently be sold or leased for.

The maintenance plan serves the purpose of anticipating major expenditure upon a timeline allowing the owners corporation to budget money aside in the form of a maintenance fund to meet these future expenses.

‘‘A surprising approach to Strata Management’’

Good strata management hinges on regular communication and prompt service.

We are a small boutique style management company, keeping it simple and streamlined.

Due to the manageable size of our portfolio, communication is prompt and backed up with the necessary service and support.

At the end of the day, it is a service industry and reputations are based on the service and support that management companies provide.

If you as an owner are currently thinking that you are paying for poor service with little support and communication, why not give us a quick call?

You may be pleasantly surprised.

Dakota Panetta | Solutions in Engineering dakotap@solutionsinengineering.com

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Call 03 8726 9962 www.stratapoint.com.au www.stratapoint.com.au

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ANTENNAS Install My Antenna

Professional TV Antenna Service For You Today P: 1300 800 123 W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au

EDUCATION & TRAINING LookUpStrata

Australia’s Strata Title Information Site W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au

Your Strata Property

Demystifying the legal complexities of apartment living

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Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@strata.community

SOFTWARE Mimor

Connecting People – Creating Communities P: 0414 228 644 W: https://www.mimor.com.au/ E: info@mimor.com.au

Stratabox

Building Confidence P: 1300 651 506 W: https://stratabox.com.au/ E: contact@stratabox.com.au

ResVu PTY LTD

Customer Service Software for Strata P: 08 7477 8991 W: https://resvu.com.au/ E: enquiries@resvu.com.au

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StrataMax

Streamlining strata P: 1800 656 368 W: https://www.stratamax.com/ E: info@stratamax.com

MYBOS

Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com.au/ E: sam@mybos.com.au

Strata Vault

Securely share documents with third parties P: 1300 0 VAULT (82858) W: https://www.stratavaults.com/ E: julie@thestratavault.com

Urbanise

Automate your workload to increase efficiency.

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FACILITY MANAGEMENT LUNA

Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management

JKR Property Group

Facilities and Building Management Solved.

P: 1300 294 088 W: http://www.jkrpropertygroup.com.au/ E: admin@jkrpropertygroup.com.au

Australian Facilities Management

Integrated facilities management services & solutions P: 03 9816 4722 W:https://www.australianfacilitiesmanagement.com.au/ E: info@australianfacilitiesmanagement.com.au

Elite Building Managers Australia

Building Manager experts.

P: 0420 520 976 W: https://www.elitebma.com/ E: matt@elitebma.com

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BUILDING ENGINEERS & INSPECTORS Solutions in Engineering

Quality Reports On Time, Every Time!

P: 1300 136 036 W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com

Forte Asset Services

Operational Excellence in Every Building P: 1300 920 752 W: https://www.forteassetservices.com.au/ E: info@forteas.com.au

Sedgwick

Building Consultancy Division & Repair Solutions W: https://www.sedgwick.com/solutions/global/au E: info@au.sedgwick.com

QIA Group

Compliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au

Budget Vals

Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au

Core Project Consulting

Independent Expertise. We’ve got you covered!

P: 02 8961 3250 W: https://core.engineering/ E: admin@core.engineering

HFM Asset Management Pty Ltd Leaders in Building Efficiency P: 1300 021 420 W: https://www.hfmassets.com.au/ E: info@hfmassets.com.au

GQS

Quantity Surveyors & Building Consultants P: 1300 290 235 W: https://gqs.com.au/ E: info@gqs.com.au

Independent Inspections

Sinking Fund Forecast, Insurance Valuations, OHS P: 1300 857 149 W: http://www.iigi.com.au/ E: admin@iigi.com.au

Voltin

10,000 Safer Cities P: 1800 865 846 W: https://www.voltin.com.au/ E: accounts@voltin.com.au

Mabi Services

Valuations, Maintenance Plans, Asbestos P: 1300 762 295 W: https://www.mabi.com.au/ E: info@mabi.com.au

Quality Building Management

keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: qbm@qbm.com.au

Roscon

Property services & facilities management P: 1800 767 266 W: https://www.roscon.com.au/ E: info@roscon.com

Essential Services Compliance

Essential safety measures reporting & fire safety P: 03 9816 4840 W: https://essentialservicescompliance.com.au/ E: admin@escompliance.com.au

Leary & Partners: quantity surveying services Quantity Surveying Services Since 1977 P: 1800 808 991 W: https://www.leary.com.au/index.php/ E: enquiries@leary.com.au

DELIVERY & COLLECTION SERVICES Groundfloor™

Australian parcel, mail, and refrigerated lockers P: 03 9982 4462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com

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INSURANCE

STRATA LAWYERS

Strata Insurance Solutions

Bugden Allen Graham Lawyers

Whitbread Insurance Brokers

RC & Co Lawyers

QUS Pty Ltd

Tisher Liner FC Law Pty Ltd

CHU Underwriting Agencies Pty Ltd

Grace Lawyers

Strata Community Insurance

Holman Webb Lawyers

Protecting owner assets is who we are.

P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au

Strata Insurance Underwriting Agency P: 1300 814 011 W: https://www.qus.com.au/ E: qus@qus.com.au Specialist Strata Insurance Underwriting Agency P: 1800 022 444 W: https://www.chu.com.au/ E: info_nsw@chu.com.au Protection for your strata property. And you.

P: 1300 724 678 W: https://www.stratacommunityinsure.com.au E: myenquiry@scinsure.com.au

Flex Insurance

Your Cover Your Choice P: 1300 201 021 W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au

STRATA REPORTS Specialist in Strata Compliance Reports P: 1300 107 280 W: https://www.biv.com.au/ E: biv@biv.com.au

Experts in Owners Corporations Law P: 03 8600 9314 W: https://tlfc.com.au/expertise/owners-corporation/ E: ocenquiry@tlfc.com.au Know. Act. Resolve.

P: 03 9674 0474 W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au Body Corporate and Strata Dispute Experts P: 61 732 350 100 W: https://www.holmanwebb.com.au/ E: icontact@holmanwebb.com.au

STRATA LOAN PROFESSIONALS StrataLoans

The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.com.au

FRANCHISERS

Covid19 Safety Plans for Strata P: 1300 828 344 W: https://covid19plans.com.au/ E: plans@covidplans.com.au

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Effective, resource, clear.

P: 1300 072 626 W: https://www.rccolawyers.com/ E: assistant@rccolawyers.com

Lannock Strata Finance

BIV Reports

Covid19 Plans

Specialising in property development & strata law P: 02 9199 1055 W: http://www.bugdenallenlawyers.com.au/ E: info@bagl.com.au

Network Pacific Strata Franchise

Join our successful team P: 03 9999 5488 W: www.networkpacificstratafranchise.com.au/ E: networkpacific@franchisedevelopments.com.au

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STRATA MANAGEMENT The Knight

Strong family values & real hands-on experience P: 03 9509 3144 W: https://www.theknight.com.au/ E: lisa@theknight.com.au

Body Corporate Victoria

Specialist provider of strata management in Melbourne

P: 03 9807 2211 W: https://bodycorpvic.com.au/ E: info@bodycorpvic.com.au

CLEANING

Stratabase Holdings P/L

Ai Odour Control Systems

Integrity & excellence in Owner’s Corp Management P: 0412247589 W: https://stratabasemgt.com/ E: ingrid@stratabasemgt.com

Actualise your facilities’ potential P: 1300 728 760 W: https://www.aiodourcontrolsystems.com.au/ E: info@aiodourcontrolsystems.com.au

Strata Management Consultants

Clean As You Go

We Help Committees to Change OC Companies P: 1300 917 848 W: https://www.strataconsultants.com.au/ E: office@strataconsultants.com.au

Leaders in Caretaking and Facility Maintenance P: 1300 525 651 W: http://www.cleanasyougo.com.au/ E: info@cleanasyougo.com.au

Civium Communities

BCCS Cleaning Services

When you build trust, you build a community P: 1300 724 256 W: https://civium.com.au/ E: clientservices@civium.com.au

StrataPoint Owners Corp.

“A surprising approach to Strata Management” P: 03 8726 9962 W: https://stratapoint.com.au/ E: Hello@stratapoint.com.au

Quantum United Management

Creating vibrant and connected communities P: 61 383 608 800 W: https://www.quantumunited.com.au/ E: info@quantumunited.com.au

SOCM

Owners Corporation Management Melbourne P: 03 9495 0005 W: https://socm.com.au/ E: info@socm.com.au

Network Pacific Strata Management

Supporting our strata communities P: 07 5609 8677 W: www.networkpacificstratamanagement.com.au/ E: info@networkpacific.com.au

Strata Cleaning Specialists P: 1300 951 065 W: https://bccs.com.au/ E: info@bccs.com.au

DEFECT RESTORATION 24:seven Maintenance Solutions

Comprehensive building maintenance services P: +61 3 9008 5423 W: https://24sevenms.com.au/ E: admin@24sevenms.com.au

ACCOUNTANTS Tinworth & Co

Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com

PLUMBING The Drain Man

Blocked Drain? The Drain Man can help P: 1800 843 372 W:https://www.thedrainman.com.au/ E: enquiries@thedrainman.com.au

Bright & Duggan

Strata Professionals P: 0299027100 W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au

ELECTRICAL

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ELECTRICAL

PAINTING

Energy On Pty Ltd

Higgins Coatings Pty Ltd

ENM Solutions

Dulux Property Services

Providing utility network solutions P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au Providing Solutions for Embedded Networks P: 1300 000 366 W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au

FIRE SERVICES Linkfire Pty Ltd

Your essential safety partner P: 1300 323 263 W: https://www.linkfrire.com.au/ E: sales@linkfire.com.au

LIFTS & ELEVATORS Innovative Lift Consulting Pty Ltd

Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au

CLOTHES LINES Lifestyle Clotheslines

Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au

SUSTAINABILITY & ENERGY The Green Guys Group

Australia’s Leading Energy Saving Partner W: https://www.greenguys.com.au/ E: sean@greenguys.com.au

Arena Energy Consulting Pty Ltd

Independent Embedded Network Consulting Services P: 0452 411 247 W: https://www.arenaenergyconsulting.com.au/ E: joseph@arenaenergyconsulting.com.au

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Specialist painters in the strata industry P: 1300 HIGGINS W: https://www.higgins.com.au/ E: info@higgins.com.au Total Building Maintenance & Remedial Solutions P: 0434 834 799 W: https://www.duluxconstructionsolutions.com.au/ E: propertyservice@dulux.com.au

Calibre Coatings

P: 0423 800 153 W: http://calibrecoatings.com.au/ E: grant@calibrecoatings.com.au

Avello Group

Painting Services for Owners Corp properties P: 1300 283 556 W: https://avello.com.au/ E: estimating@avello.com.au

WATERPROOFING The Superseal Group

Trusted Experts in all aspects of Waterproofing P: 07 5519 4916 W: https://supersealgroup.com/ E: admin@supersealgroup.com

RECRUITMENT SERVICES sharonbennie – Property Recruitment

Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au

MARKETING Marketing for Strata

Building Brand Authority & Thought Leadership P: 61 425 232 394 W: https://www.marketingforbusiness.com.au/ E: janette@marketingforbusiness.com.au

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INTERNET & TELECOMMUNICATIONS Spirit Technology Solutions Do IT with Spirit P: 1800 774 748 W: https://www.spirit.com.au/ E: developers@spirit.com.au

CONSULTING Strata Solve

Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au

INVESTMENT SERVICES Strata Guardian

Fight low returns and rising levies with us P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com

AUDITORS Property Audit & Assurance

Strata & Managed Property Auditing Specialists P: 03 9525 3777 W: http://www.lowelippmann.com.au/ E: paa@llca.com.au

Would you like your Strata Story featured in the next edition of The VIC Strata Magazine?

We want to share your strata stories with the LookUpStrata community.

Some examples of what you may wish to share: • A project you have implemented in your complex that has made a positive impact (e.g a process, community building activities, parking procedure, ect) • Do you have a funny story to share about strata living?

• Have you received a response back from one of the LookUpStrata professionals that has positively impacted you or your complex?

• Have you made a change to improve sustainability?

If you would like to share your strata scheme story with the LookUpStrata community, Please send your story and photos to: administration@lookupstrata.com.au Disclaimer: If you send your strata story to

administration@lookupstrata.com.au,

you are agreeing to have your story published on the LookUpStrata platform or via social media.

We must have written permission from each individual shown in the photo. Submissions may be refused for any reason.

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